How a ¥1.5 Billion Investor Achieved 19% Yield Through Dilapidated House Investments

Houses nearly free of charge become treasure troves

“‘Old house investment’ is a method of buying detached houses as cheaply as possible—ideally almost for free—then renovating them and renting them out,”

says Masanori Nagae, who succeeded as a tax accountant and certified public accountant, endured multiple major setbacks as an investor, and has now built assets exceeding 1.5 billion yen.

While achieving results in his main profession, he has practiced various investments, experiencing both success and failure. We asked him again what kind of investment he recommends now—and this is his answer.

Targeting abandoned houses

“Recently, vacant houses have become a social issue nationwide. I target those neglected, abandoned houses,” he explains.

In fact, Nagae has already purchased several detached houses around 40 years old. Properties in Shizuoka went for 980,000 yen, in Saitama for 3.3 million yen, and in Kyoto for 2.5 million yen.

“The Saitama property is in Satte City, about a 12-minute walk from Satte Station. It’s a 44-year-old detached house. I bought it for 3.3 million yen and spent about 500,000 yen on renovations.

I plan to rent it out for 60,000 yen per month. If things go as expected, the annual rent will be 720,000 yen, giving a yield of about 19%. Even accounting for property taxes and other costs, a yield of around 15% is well within reach.”

Stable as a side business

Do people really pay rent for such old properties?

“That’s a question I get a lot (laughs). Location selection is important, but in ordinary urban areas, you can find tenants. As I mentioned, I already have several properties rented out.

Once a tenant moves into a single-family home, they tend to stay longer, so as a side business it’s extremely stable. With this level of investment, many people may not even need a bank loan. Without borrowing, there are no interest costs.”

Of course, even for old house investment, it’s risky for beginners without knowledge or experience to jump in. He recommends starting by gathering information through books, social media, or YouTube videos. General real estate websites also list ultra-cheap houses, and recently specialized sites like “Minna no 0 Yen Properties” have appeared. Those interested should check them out.

But old house’s are only the beginning. What is the next explosive asset that Nagae is secretly preparing? In addition to Japanese real estate, he is now investing long-term in emerging market stocks and certain financial products—and practicing modern alchemy with AI as his partner.

The paid version of FRIDAY Subscription fully reveals the core of his portfolio for protecting and growing 1.5 billion yen in assets, as well as specific stocks to watch.

▼ Masanori Nagae – Certified Public Accountant, Tax Accountant, Investor. Born in Aichi Prefecture in 1980. After university, passed the CPA exam and joined a major auditing firm, handling audits of listed companies and IPO support. After transferring to Toyota Motor Corporation, he became independent in 2012. In about three years, he expanded his tax accounting firm to five offices nationwide. As an investor, he started with stocks in his 20s and began real estate in his 30s, experiencing many failures. His cumulative losses totaled around 50 million yen. When his annual investment income exceeded 10 million yen, he sold his tax accounting firm and became a full-time investor. He now manages total assets exceeding 1.5 billion yen. His latest book, The Strongest Investing and Tax-Saving Strategies: How a Dual-Wielding Tax Accountant Grows Wealth, is now on sale.